CanSino Biologics (HKG:6185) said it plans to use its capital and surplus reserves to fully offset accumulated losses of 1.45 billion yuan as of Dec. 31, 2024, according to a Nov. 7 Hong Kong bourse filing.

Shares of the firm rose 3% in Monday's midday trade.

The plan calls for using 118.4 million yuan of surplus reserves and 1.33 billion yuan of capital reserves, both derived from share premiums, to eliminate the parent company's accumulated losses.

After the adjustment, CanSino's surplus reserve will fall to zero, while its capital reserve will decline to 5.24 billion yuan.

The proposal, approved by the board, will be subject to shareholder approval at an upcoming extraordinary general meeting.